INVESTOR PRESENTATION October 2017 Forward Looking Statements This - - PowerPoint PPT Presentation

▶
investor presentation
SMART_READER_LITE
LIVE PREVIEW

INVESTOR PRESENTATION October 2017 Forward Looking Statements This - - PowerPoint PPT Presentation

Oct 04, 2023 289 likes •804 views

INVESTOR PRESENTATION October 2017 Forward Looking Statements This presentation contains forward-looking statements, that should be considered as good faith estimates. Such statements are subject to risks and uncertainties outside of Via

slide-1
SLIDE 1

INVESTOR PRESENTATION

October 2017

slide-2
SLIDE 2

2

Forward Looking Statements

This presentation contains forward-looking statements, that should be considered as good faith estimates. Such statements are subject to risks and uncertainties outside of Viña Concha y Toro’s control that could cause Viña Concha y Toro’s actual results to differ materially from those set forth in the forward-looking statements. These risks factors include but are not limited to the risks factors in Item 3 – “Key Information –Risk Factors” in the 20-F Annual Report, and in those described in Viña Concha y Toro’s Financial Statements, Note 5 (“Gestión de Riesgos Financieros”). Forward-looking statements speak only as of the date they are delivered, Viña Concha y Toro undertake no obligation to publicly update or revise them considering developments which differ from those anticipated.

slide-3
SLIDE 3

Consolidated sales volume

3

30.6 30.7 33.2 34.3 36.2

2012 2013 2014 2015 2016

Wine sales -million 9 liter cases

slide-4
SLIDE 4

Consolidated sales

Ch$ million

4

448,250 475,622 583,313 636,194 658,448

2012 2013 2014 2015 2016

slide-5
SLIDE 5

5

Operating income

Ch$ million

36,164 36,213 63,010 71,022 70,185 8.1% 7.6% 10.8% 11.2% 10.7%

0% 2% 4% 6% 8% 10% 12% 20,000 40,000 60,000 80,000 100,000 120,000

2012 2013 2014 2015 2016 Operating income Operating margin

slide-6
SLIDE 6

6

EBITDA

Ch$ million

53,852 54,973 83,425 93,432 92,701 12.0% 11.6% 14.3% 14.7% 14.1%

0% 2% 4% 6% 8% 10% 12% 14% 16% 20,000 40,000 60,000 80,000 100,000 120,000

2012 2013 2014 2015 2016 EBITDA EBITDA margin

slide-7
SLIDE 7

7

Net Income

Ch$ million

30,022 33,174 43,051 49,797 47,931 6.7% 7.0% 7.4% 7.8% 7.3%

0% 2% 4% 6% 8% 10% 20,000 40,000 60,000 80,000 100,000 120,000

2012 2013 2014 2015 2016 Net income Net margin

slide-8
SLIDE 8

12M 2016 MM Ch$ 12M 2015 MM Ch$ Change %

Total volume (MM cases) 38.6 36.8 4.9% Sales 658,448 636,194 3.5% Cost of sales (412,382) (391,505) 5.3% Gross Profit 246,066 244,689 0.6% Gross margin 37.4% 38.5% SG&A (182,475) (172,453) 5.8% SG&A / sales

  • 27.7%
  • 27.1%

Operating Income 70,185 71,022

  • 1.2%

Operating margin 10.7% 11.2% Non-operating Income (4,113) (4,141)

  • 0.7%

Net income 47,931 49,797

  • 3.7%

8

Financial Results - 2016

slide-9
SLIDE 9

9

Operating profit by country

Country Sales Operating MM 9L Cases MM Ch$ margin

Chile 33.4 470,712 12.5% Trivento 2.6 45,628 8.6% Fetzer 2.6 77,366 1.6% Total Holding 38.6 593,706 10.7%

slide-10
SLIDE 10

Country Exports Domestic market CHILE: Operating margin 16.0% 1.6% % of total sales 61.7% 19.4% ARGENTINA: Operating margin 13.6%

  • 20.1%

% of total sales 6.0% 1.0%

10

Operating profit by country

slide-11
SLIDE 11
  • SALES INCREASE OF 5.5% IN AVERAGE PER YEAR
  • EXPANSION IN OPERATING MARGIN TO A RANGE OF

15.5% - 16.5% BY 2022

11

Company Targets for the next 5 years

slide-12
SLIDE 12

1. RESTRUCTURING PROCESS AND COST SAVINGS 2. NEW COMMERCIAL STRATEGY 3. SPECIAL FOCUS ON CASILLERO DEL DIABLO BRAND 4. FOCUS ON OTHER HIGH PERFORMING BRANDS 5. FOCUS ON KEY MARKETS TO SEEK HIGHER GROWTH 6. SEGMENT INNOVATIONS IN NON WINE CATEGORY

12

Strategy to achieve our 5-year targets

slide-13
SLIDE 13
  • Expected to be finished in 1H18
  • Cost Savings
  • Operational Efficiency
  • Commercial strategy - focus on core brands
  • Estimated annual savings:

Ch$12,000 million, approx. 1.5% to 2.0% of sales

13

  • 1. Restructuring process and cost savings
slide-14
SLIDE 14

14

USA – Growth rate by price segment - 2016

  • 2. New commercial strategy for CyT group
  • Prepared to take opportunities where industry is growing
  • Premium wine is driving the growth
slide-15
SLIDE 15
  • Premium wines:

Seek strong growth in sales, focused in price segments >US$10

  • Non-Premium wines:

Low single digit growth for categories of price <US$10

15

Current mix Chile Argentina USA Total Premium 37.1% 44.8% 78.0% 42.5% Non-Premium 62.9% 55.2% 22.0% 57.5%

  • 2. New commercial strategy for CyT group
slide-16
SLIDE 16
  • 3. Special focus on Casillero del Diablo brand

16

slide-17
SLIDE 17
  • 3. Special focus on Casillero del Diablo brand

UTRA PREMIUM SUPER PREMIUM ULTRA PLUS PREMIUM L E Y E N D A

F O B 2 0 0 U S D

R E S E R V A P R I V A D A

F O B 6 0 U S D

R E S E R V A

F O B 3 5 U S D

D E V I L ’ S C O L L E C T I O N

F O B 4 5 U S D P R E M I U M : 9 3 % U S $ P P , S P , U P : 7 % U S $

CURRENT PORTFOLIO

17

slide-18
SLIDE 18

STRONG SALES GROWTH

  • 3. Special focus on Casillero del Diablo brand

+USD 200 mm

2017

18

slide-19
SLIDE 19

STRONG SALES GROWTH 2016 v/s 2015

  • 3. Special focus on Casillero del Diablo brand

29% 8% 160% 22%

19

slide-20
SLIDE 20
  • 3. Special focus on Casillero del Diablo brand

As a key Brand for the Company, Casillero del Diablo must be the driver for

VOLUME and VALUE

20

slide-21
SLIDE 21
  • 3. Special focus on Casillero del Diablo brand

INNOVATION = GROWTH

Highly competitive and complementary product portfolio, adding innovation to the brand

21

slide-22
SLIDE 22
  • 3. Special focus on Casillero del Diablo brand

UTRA PREMIUM SUPER PREMIUM ULTRA PLUS PREMIUM L E Y E N D A

F O B 2 0 0 U S D

R E S E R V A P R I V A D A

F O B 6 0 U S D

R E S E R V A

F O B 3 5 U S D

D E V I L ’ S C O L L E C T I O N

F O B 4 5 U S D

CURRENT PORTFOLIO

22

slide-23
SLIDE 23
  • 3. Special focus on Casillero del Diablo brand

LARGEST PREMIUM WINE RANGE IN THE WORLD

23

slide-24
SLIDE 24
  • 3. Special focus on Casillero del Diablo brand

Red Blend

New addition to the Global Range in Reserva Line

24

slide-25
SLIDE 25
  • 3. Special focus on Casillero del Diablo brand

PACKAGING

  • Different from Reserva
  • Modern look and more into

the “Red Blend” mood

25

slide-26
SLIDE 26
  • 3. Special focus on Casillero del Diablo brand

UTRA PREMIUM SUPER PREMIUM ULTRA PLUS PREMIUM L E Y E N D A

F O B 2 0 0 U S D

R E S E R V A P R I V A D A

F O B 6 0 U S D

R E S E R V A

F O B 3 5 U S D

D E V I L ’ S C O L L E C T I O N

F O B 4 5 U S D

CURRENT PORTFOLIO

26

slide-27
SLIDE 27
  • 3. Special focus on Casillero del Diablo brand

RED BRUT WHITE

27

slide-28
SLIDE 28
  • 3. Special focus on Casillero del Diablo brand

35 USD 60 USD

PRICE SEGMENT OPPORTUNITY

45 USD

28

slide-29
SLIDE 29
  • 3. Special focus on Casillero del Diablo brand

UTRA PREMIUM SUPER PREMIUM ULTRA PLUS PREMIUM L E Y E N D A

F O B 2 0 0 U S D

R E S E R V A P R I V A D A

F O B 6 0 U S D

R E S E R V A

F O B 3 5 U S D

D E V I L ’ S C O L L E C T I O N

F O B 4 5 U S D

CURRENT PORTFOLIO

29

slide-30
SLIDE 30
  • 3. Special focus on Casillero del Diablo brand

NEW RESERVA PRIVADA PORTFOLIO

CABERNET SAUVIGNON CARMENERE SAUVIGNON BLANC CHARDONNAY

30

slide-31
SLIDE 31
  • 3. Special focus on Casillero del Diablo brand

UTRA PREMIUM SUPER PREMIUM ULTRA PLUS PREMIUM

NEW BRAND PORTFOLIO

INNOVATIONS

  • Incremental

volume

  • Show a fresh and

modern brand

  • Stand out from

the competition

31

slide-32
SLIDE 32
  • 3. Special focus on Casillero del Diablo brand

32

slide-33
SLIDE 33

33

  • 4. Focus on high-performing brands - Cono Sur Bicicleta

804 938 1,116 1,263 1,334 692 703

  • 200.0
400.0 600.0 800.0 1000.0 1200.0 1400.0 1600.0

2012 2013 2014 2015 2016 1H16 1H17

Th 9L cases

CAGR: + 13%

slide-34
SLIDE 34
  • Target: Price increase from US$26 to US$30 in 3 years.

34

  • 4. Focus on high-performing brands - Cono Sur Bicicleta
slide-35
SLIDE 35

88 199 261 464 636 296 386

  • 100.0
200.0 300.0 400.0 500.0 600.0 700.0

2012 2013 2014 2015 2016 1H16 1H17

Th 9L cases

35

CAGR +64%

  • 4. Focus on high-performing brands - Trivento Reserve
slide-36
SLIDE 36

36

KEY MARKETS

  • 4. Focus on high-performing brands - Trivento Reserve

USA: Hot brand UK: #1 Malbec Growing at 32%

slide-37
SLIDE 37

37

230 310 353 377 462 534 220 235

2011 2012 2013 2014 2015 2016 1H16 1H17

Th 9L cases CAGR

+18%

GLOBAL LEADER IN ORGANIC WINE

  • 4. Focus on high-performing brands - Bonterra
slide-38
SLIDE 38

1,983 15,957 83,602 33,573 47,857

  • 10000.0
20000.0 30000.0 40000.0 50000.0 60000.0 70000.0 80000.0 90000.0

2014 2015 2016 1H16 1H17

Th 9L cases

  • 4. Focus on high-performing brands - 1000 Stories

38

CAGR

+549%

SUCCESSFUL INNOVATION IN THE AMERICAN MARKET

slide-39
SLIDE 39

39

  • 5. Focus on key markets to seek higher growth

USA CANADA MEXICO BRAZIL CHINA JAPAN UK UAE (Arab Emirates)

slide-40
SLIDE 40
  • Looking for oportunities in non-wine categories
  • Target: 5% of sales; operating margin of Ch$ 3,500

million

40

  • 6. Segment innovations in non-wine category
slide-41
SLIDE 41

41

Strategy to achieve our 5-year targets

We see in our vertically integrated business model, from the vineyards to the commercial network, a major competitive advantage in order to achieve

  • ur targets.
slide-42
SLIDE 42

42

In addition, the company is entering in the Real Estate business, focused on maximizing the profitability of its non-core properties.

Real Estate business

slide-43
SLIDE 43

43

We have identified 400 hectares of non-core properties with high potential for real estate projects. In a first stage, we have targeted 74 hectares to develop in the next 10 to 15 years.

Real Estate business

slide-44
SLIDE 44

44

Real Estate business: Fundo Tocornal

N

TOCORNAL Location: Puente Alto, RM Land area: 43.57 Ha. Current state: feasibility study (18 months) Real Estate project: houses Project timing: 11 years

  • Est. land market value

w/feasibility: UF 1.8/m2 Estimated project market value*: UF 4.5 /m2

*Considers value gains UF + 2% annual

slide-45
SLIDE 45

45

Real Estate business: Pirque Ross

PIRQUE ROSS URBANO

N

Location: Pirque, RM Land area: 30 Ha. Current state: sanitary feasibility (24 months) Real Estate project: houses Project timing: 7 years

  • Est. land market value

w/feasibility: UF 1.8/m2 Estimated project market value*: UF 4.0 /m2

*Considers value gains UF + 2% annual

slide-46
SLIDE 46

46

Real Estate business: Industria Corchera (50% owned)

Location: La Cisterna, RM Land area: 10,070 m2 Current state: project draft approval (6 months) Real Estate project: apartments Project timing: 9 years

  • Est. land market value

w/feasibility: UF 19/m2 Estimated project market value*: UF 48.5/m2

*Considers value gains UF + 2% annual

slide-47
SLIDE 47

47

In line with our restructuring program, regarding logistics optimization, we expect to divest certain distribution facilities in the next 12 to 24 months.

Divestment of facilities in Chile

slide-48
SLIDE 48

48

Divestment of facilities in Chile

Sucursales Superficie Terreno Superficie Construccion Precio (UF/m2 terreno) Valorización (UF) Punta Arenas 7.500 970 4,5 UF 33.750 Curico 28.000 20.000 3,0 UF 84.000 Antofagasta 1.250 8,0 UF 10.000 Coquimbo 7.500 1.000 3,0 UF 22.500 Osorno 950 1.500 9,0 UF 8.550 Concepcion 2.900 1.500 6,0 UF 17.400 San Antonio 3.000 2.000 8,0 UF 24.000 TOTAL 51.100 26.970 UF 200.200

slide-49
SLIDE 49

49

Real Estate business and divestments - Summary

Land area (hectares)

  • Est. value

UF/m2 Total value Tocornal: 43.5 4.5 UF 1,957,500 Pirque Ross: 30.0 4.0 UF 1,200,000 Corchera (50% CyT) 0.5085 48.5 UF 247,000 Divestments UF 200,000 Estimated total profit before tax UF 3,604,500 USD equivalent (USD = CLP625) MMUSD 153.5

slide-50
SLIDE 50

INVESTOR PRESENTATION

October 2017